From Black Scholes to Black Holes
summary
Uses symmetry groups (Schrödinger, 2D conformal, Lifshitz) to derive explicit two‑point option pricing kernels and a nonlinear Black‑Scholes family determined up to a cross‑ratio, obtained via null/spatial reductions (partial Fourier transforms) from a 3D conformal theory. Claims a holographic embedding where nonlinear, fractional boundary dynamics map to linear bulk PDEs, and financial crashes map to collapse to a bulk black hole, producing an analytic crash model that matches fast onset/slow evaporation behavior seen in March 2020 and reproduces volatility skews via RG.
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chapters (7)
- 0:00Introduction to econophysics
- 1:36Symmetry and finance
- 5:11Group theory in market modeling
- 12:39Symmetry group interplays
- 15:20Holography in finance
- 24:50Gravity and non-linear theories
- 28:04Black hole physics for crashes
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